Centaur Media acuqires digital marketing provider for £12m

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Centaur
Media has agreed to acquire Econsultancy, a digital marketing
information provider, for an initial consideration of £12m.

Econsultancy
is a digital and events-led information provider to the global digital
marketing and e-commerce community in the UK, with a growing presence in
the USA, Middle East, Asia and Australia.

The acquisition is
subject to shareholder approval, and seen as a key part of the strategy
to transform the group into a predominantly digital and events-led
business.

Centaur would pay £12m, with a deferred consideration
of up to £38m due in 2016, based on EBITDA performance for the year
ending December 2015.

Econsultancy has approximately 110,000
registered users and 5,000 subscribers. In the financial year to 31
December 2011, it reported revenues of £6.6m, up 50 per cent
year-on-year.

“The earnings enhancing acquisition of Econsultancy
provides us with an exciting opportunity to acquire a leading
information brand in a high growth sector with global potential,” said
Centaur chief executive Geoff Wilmot.

“Econsultancy is highly
complementary with Centaur and gives us a prominent position in the
rapidly growing digital marketing sector with the opportunity to scale
internationally. We see considerable potential for collaborative growth
through leveraging our existing position in marketing and the
development of high value, paid-for information products.”

It is
proposed that Econsultancy will form part of Centaur’s business
information division, but will work closely with its exhibitions
division, with the intention of establishing Econsultancy as the
“digital marketing expert” for the wider marketing community,